All Forum Posts by: Kevin Zimmer

@Ashley Rummage, I assume this extra 10% you have is over and above the 6 months emergency cash reserve you have to pay bills in the event the RE market slows and/or something were to happen to your husbands employment. If that is the case, when people ask me whether something is a good investment I always say compared to what.  You did not say what the interest on your home loan is, but if your investment will earn you more than what you pay in interest that is what you should do.

I do a lot of short sales and investment properties. As far as having 20% in the home, that typically will not reduce your monthly payment (at this point).  Any prepayment shortens the time of your loan though (i.e. may cut some payments off of the end...depends on your loan).  Also, worst case, if you ever did have to short sell your house, the lender will be taking the hit, not you. 

Same thing with the Kitchen upgrade.  If you put money there now, and something were to happen, those are sunk costs.  Better to make an investment, and let the proceeds of the investment help pay the kitchen renovation costs.

I understand you are doing a lot of reading, and there is a lot of free information you can get on BP.  Some of your money  could be spent on education.  Before signing up with a guru, make sure you vet any program on BP.

Hope this helps, I'm happy to give more specific examples.  Good luck

Harold, just curious, since you have already established a self directed IRA with checkbook control, and you can literally invest in anything except collectibles and life insurance, why are you putting money in the TD account? To keep it earning something because you are between opportunities?

@Kin Lay that is a trick question.  If you are doing tax liens you should not just look at interest rate, you also need to consider penalty.  Interest is normally annualized, where as a penalty is absolute.  For example, Iowa is a 24% interest (2% per month).  so a 10k lien after 1 month returns you 2% ($200)  On the other hand, Louisiana is 12% + 5% penalty.  So a 10k lien after 1 month returns $100 + $500 = $600.  Lot's of other examples  too

Hey Erik, I work the Hamilton area and am very familiar with it.  I only have 2 sfr's there, one with a section 8.  Vacancy rate will be directly tied to everything you already read about here...type of house, location, condition, and amount you are charging for rent.  Feel free to PM me and I will share all I know.

Like any education, the key is what you do with it.  I think you can get everything you need by  looking at past posts on BP or asking pointed questions.  

Go to your local rei club or meetup several times. Find the people that are not selling something, the ones that believe that giving benefits all. Learn what they have. Offer to work for one of them for free. Not forever, but just to see if you have the discipline for this job (if you do not think it is a job you have been mislead) THEN, let them know you have some money you would like to invest with them. Write up a proper JV contract, where you are putting up the money/credit, they are putting up the time/knowledge. Split profits 50/50. Or whatever you work out. You will learn more from doing and failing, and you will most likely get your money back.

Absolutely a great read. I am all for education, but I learn more when I have skin in the game.  Get out there and start doing it.  It is not easy, the good deals take time to find.  But you cannot find deals by reading a book.    

@Brianni Johnson, education is very important, but action is what will make you money.  You only really need to know as far as the next step.  If you find a deal, the money will come.   You made a great start joining this forum.  IMHO, getting skin in the game by investing time and money in a property will force you to learn. 

It is always important to know about what it will cost to fix, repair, or remodel a property.  If I recall, the book you reference also gives life expectancy in addition to repair costs, so in my opinion it is just as relevant to a b&h strategy as a flip.

did you try rentometer?